DoT issues 'letter of intent' to 60 local firms under VNO policy

As many as 70 firms expressed interest in VNO permits at the local level, while 10 companies applied for national licences under the VNO policy.Muntazir Abbas | ETTelecom | Updated: October 05, 2016, 21:58 IST

NEW DELHI: The telecom department has issued letters of intent to 60 firms for virtual network operator’s (VNO) licence.

Once they are issued VNO permits, these small companies and entrepreneurs can purchase bulk voice minutes and data bandwidth from incumbent telecom service providers to resell in rural and remote areas under their own brand name.

In March this year, the department of telecommunications (DoT) had notified VNO policy after almost eight years of discussions to allow telcos to monetise unused airwaves and infrastructure.

As many as 70 firms expressed interest in VNO permits at the local level, while 10 companies applied for national licences under the VNO policy.

Telecom secretary JS Deepak had earlier referred to the segment as a $4 billion worth opportunity for telcos, and said the VNO policy would help maximise operators' efficiency by sharing of spectrum and better capacity utilisation.

State-run Bharat Sanchar Nigam (BSNL) is looking to rope in virtual operators to utilise its vast unused network primarily in the hinterland.

Separately, RCom initiated contempt proceedings in the apex court against the Department of Telecommunications, blaming it for delaying a spectrum sale that would have enabled dues to be paid to Ericsson and lenders.